VA Loans: Home Financing for Eligible Veterans and Military

VA loans are government-backed mortgages available to eligible veterans, active-duty service members, and surviving spouses. They may allow zero down payment with no private mortgage insurance required, subject to VA and lender guidelines.

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What Is a VA Loan?

A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs. It’s one of the most significant benefits available to eligible military service members, veterans, and surviving spouses. VA loans are originated by private lenders like American Mortgage Services and guaranteed by the VA, which allows lenders to offer favorable terms without requiring private mortgage insurance.

Who May Be Eligible for a VA Loan

Eligibility is based on your service history. You may be eligible if you are:

  • An active-duty service member who meets minimum service requirements
  • A veteran who was honorably discharged
  • A National Guard or Reserve member who meets certain service thresholds
  • The surviving spouse of a veteran who died in service or from a service-connected disability

You’ll need to obtain a Certificate of Eligibility (COE) to confirm your eligibility. Your loan officer can help you obtain your COE through the VA.

Key Benefits

  • No down payment required in most cases
  • No private mortgage insurance (PMI)
  • Competitive interest rates (subject to your credit and scenario)
  • No prepayment penalty
  • The benefit can be used more than once in many situations
  • Assumable by a qualified buyer

VA Funding Fee

Most VA borrowers pay a one-time VA funding fee, which helps sustain the VA loan program. The fee varies based on whether it’s your first use of the benefit, the loan type, and your down payment amount. For first-time use on a purchase loan, the fee ranges from 1.25% to 2.15% of the loan amount depending on down payment. Subsequent use rates are higher. The funding fee is typically financed into the loan.

Certain veterans are exempt from the funding fee, including those receiving VA compensation for a service-connected disability, eligible surviving spouses receiving Dependency and Indemnity Compensation (DIC), and active-duty recipients of the Purple Heart. Talk with your loan officer about whether you may qualify for a fee exemption.

VA Loan Limits

VA no longer enforces a maximum loan amount for eligible borrowers with full entitlement. However, lenders may have their own limits for VA loans above conforming thresholds. Borrowers with partial entitlement (due to an existing VA loan or previous loss) may have county-based loan limits apply.

Property Requirements

VA loans are for primary residences only. The property must meet VA Minimum Property Requirements (MPRs), which ensure the home is safe, structurally sound, and sanitary. A VA-approved appraiser will assess the property during the appraisal process.

VA Loans in Tampa, FL

MacDill Air Force Base is in South Tampa, making Hillsborough County one of the more active VA loan markets in Florida. Active-duty borrowers and veterans commonly purchase in Brandon, Riverview, Carrollwood, and surrounding communities. See the Tampa VA loan guide for neighborhood context, COE assistance details, and VA IRRRL options for existing Tampa VA loan holders.

Limitations

  • Primary residence only (no investment properties or vacation homes)
  • VA funding fee applies (unless exempt)
  • Property must meet VA MPRs
  • Some property types (condos, manufactured homes) require additional VA approval

Frequently Asked Questions

Who is eligible for a VA loan?

Eligibility is based on your service history. You may qualify if you are an active-duty service member, an honorably discharged veteran, a National Guard or Reserve member meeting certain service thresholds, or the surviving spouse of a veteran who died in service or from a service-connected disability. You will need a Certificate of Eligibility (COE) to confirm eligibility.

Does a VA loan require a down payment?

In most cases, no. Eligible borrowers with full VA entitlement may purchase a home with no down payment. Making a down payment can reduce or eliminate the VA funding fee and lower your monthly payment. Talk with a loan officer about your specific entitlement and scenario.

What is the VA funding fee and who is exempt?

The VA funding fee is a one-time fee that helps sustain the VA loan program. The amount varies based on first versus subsequent use and down payment. Veterans receiving VA compensation for a service-connected disability, eligible surviving spouses receiving Dependency and Indemnity Compensation (DIC), and active-duty Purple Heart recipients are typically exempt from the funding fee.

Can I use my VA loan benefit more than once?

In most cases, yes. VA entitlement can be restored after paying off a VA loan and selling the property, or in some cases while you still have an existing VA loan (called bonus entitlement). Talk with a loan officer about your entitlement situation before applying.

What is a VA IRRRL and how does it work?

The VA Interest Rate Reduction Refinance Loan (IRRRL), also called a VA Streamline Refinance, allows existing VA loan holders to refinance to a lower rate with reduced documentation and typically no appraisal required. You must be refinancing an existing VA loan and generally need to lower your interest rate or move from an adjustable to a fixed rate.

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Subject to credit, income, property, program, and lender guidelines. Talk with a loan officer about your specific scenario.

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